While regulations may not be a part of the blockchain’s core decentralization ethos, it is largely observed that government presence will pave the path for a world powered by cryptocurrencies and blockchain systems. In this regard, the South Korean government may overrule the blanket ban it placed on Initial Coin Offerings (ICOs) in 2017.
As per a report by Business Korea on May 29, 2018, the National Assembly of South Korea announced an official recommendation to allow the controversial fundraising technique in the country, limited to domestic projects.
The assembly had 300 members of parliament in attendance, who reportedly acknowledged the recommendation and its proposal to introduce investor protection laws.
The Special Assembly of South Korea. Source: EPRS Blog
Furthermore, the committee called out the government’s strict measures, even terming them as “neglectful of their duties” in terms of creating an optimal environment for the cryptocurrency sector. Additionally, the report suggested that the ban caused a talent-drain to crypto-friendly countries like Singapore and Switzerland, where several Korean blockchain startups shifted to continue business.
As it stands, the government shall enter advanced discussions over the future of the cryptocurrency and blockchain sector in South Korea, and “accelerate” the regulatory developments. Notably, the committee’s appeal contained a detailed document of potential legislative and policy changes, in a bid to expedite the process.
Committee Calls For Task Force
Terming it the “Fourth Industrial Revolution,” the Korean committee asked the government to form a dedicated task force, comprising of blockchain experts and parliament members, for the purposes of increasing transparency “of cryptocurrency trading and establishing a healthy trade order.”
The report stated:
“The administration also needs to consider setting up a new committee and building governance systems at its level in a bid to systematically make blockchain policy and efficiently provide industrial support.”
As reported earlier by BTCManager, the move follows an appeal by the Democratic Party of Korea in March 2018 that called for a bill to legalize the launch of ICOs in the technologically progressive country.
At the time, party representative Hong Eui-rak stated:
“The bill is aimed at legalizing ICOs under the government’s supervision. The primary goal of the legislation is helping remove uncertainties facing blockchain-related businesses.”
The positive turn of events comes on the back of Korea’s financial authorities choosing to focus on the positives of cryptocurrencies, suggesting inclusion of the blockchain-based digital method-of-payment after a thorough research and investor protection acts in place.